Grayscale has sued the SEC over a spot Bitcoin ETF rejection. The SEC rejected it, saying that Grayscale’s proposed spot bitcoin ETF failed to meet the required standard to prevent fraud and manipulation. The asset manager has asked the US Court of Appeals to review the SEC’s decision.
One of the world’s largest digital asset managers has filed a lawsuit with the U.S. Securities and Exchange Commission (SEC) shortly after the SEC rejected an application Wednesday to convert the Bitcoin Trust into an exchange-traded fund (ETF). “We are deeply disappointed and disagree with the decision,” Grayscale Investments said in a statement posted on its website. The SEC also rejected Bitwise’s application for a spot bitcoin ETF on the same day.
On Wednesday, the SEC rejected Grayscale’s proposal to list a spot bitcoin ETF on the NYSE Arca exchange. The regulator said the proposed ETF does not meet the standard designed to prevent fraudulent and manipulative practices and protect investors and public interests. Challenging the SEC’s decision, Grayscale asked the US Court of Appeals for the District of Columbia to review the SEC’s decision, according to a review petition Wednesday.
